On Dec. 9, 2020, the Alternative Reference Rates Committee (“ARRC”) released minutes to its meeting that day to discuss recent developments relevant to the LIBOR transition. It discussed the alignment of the current ARRC Best Practices (“Best Practices”) with (i) recent announcements by the ICE Benchmark Authority (“IBA”), the administrator of LIBOR, of its intention to consult on revised publication dates for U.S. dollar-denominated LIBOR; (ii) an announcement by the United Kingdom’s Financial Conduct Authority (“FCA”), the regulator of the IBA; and (iii) related supervisory guidance from U.S. regulatory authorities. The ARRC members observed that the supervisory guidance clearly called for no new LIBOR issuances as soon as practicable (and none later than 2021) and that the Best Practices dates for no new LIBOR issuance by product type were set with such a goal in mind. ARRC members concluded that the recommended timelines for no new issuances as currently set out in its Best Practices were consistent with the timelines and message set out in the supervisory guidance and the IBA and FCA announcements.
For a review of the Best Practices, see the SRZ Alert “LIBOR Transition Update: ARRC Publishes Best Practices,” available here.